Profero, Inc. Leaders in Lean Enterprise. Hoshin Planning for lasting results

Transcription

1 Profero, Inc. Leaders in Lean Enterprise Hoshin Planning for lasting results Session A5 Monday, March 8, :15 am 11:15 am Profero, Inc Corsair Road Suite 18 Frankfort, IL Tel: Fax: Learning Outcomes Understand the basics of Hoshin planning. See a clear path for their Hoshin planning process. Be able to identify drivers, means, outcomes, and gaps. Create an X-matrix. Effectively use a tree diagram with a process decision program chart (PDPC). Profero, inc

2 Strategy - Clear as Mud According to a survey commissioned by FranklinCovey: Less than half (48%) of workers say their firm has a clear strategic direction, and only 37% understand the reason for that direction 44% of workers say their organization has clearly communicated its most important goals 54% of employees say they understand what they are supposed to do to help their organization achieve its goals A separate study by FranklinCovey showed only 15% of workers could identify their organizations top three goals. Source: May 2004 Different Methods of Planning No planning at all Whatever the boss (corporate, the board, etc.) says Operations planning, marketing plan, budget planning Management by Objective Strategic Planning Hoshin Kanri/Policy Deployment Other Profero, inc

3 What is Hoshin Kanri? ho = direction shin = needle Hoshin = compass, a plan, policy, aim kan = control, channeling ri = logic, principle, reason Kanri = management, administration a.k.a Policy Deployment, Hoshin Used in Japan since 1960s Sets the direction for long-term prosperity Allows all ships to arrive at the same destination Profero, Inc. Leaders in Lean Enterprise Pre-work Profero, Inc Corsair Road Suite 18 Frankfort, IL Tel: Fax: Genius is 1% inspiration and 99% perspiration. Accordingly a genius is often merely a talented person who has done all of his or her homework. - Thomas Edison Profero, inc

4 Review Honest reflection Review previous year s plan What worked what didn t work? Capture lessons learned Create a Stop doing list Environmental Scan What s going on in the world today? Economic Socio-cultural Technological Political/Legal Macro-industry Resources Market Competitors Suppliers Think future Have all groups participate Keep a running file or list If applicable, create worksheets for Gap Analysis As part of the review process, see how well you were able to connect these items to your plan Profero, inc

5 Profero, Inc. Leaders in Lean Enterprise SWOT Analysis Internal strengths & weaknesses External opportunities & threats Profero, Inc Corsair Road Suite 18 Frankfort, IL Tel: Fax: MBNQA The Malcolm Baldrige National Quality Award criteria is a good example of understanding your internal strengths and weaknesses Use other criteria to help determine strengths and weaknesses 1. Leadership 2. Strategic Planning 3. Customer Focus 4. Measurement, Analysis and Knowledge Management 5. Human Resource Focus 6. Process Management 7. Business Results Profero, inc

6 5 Forces Porter s Five Forces diagram shows external opportunities and threats New Entrants Five Forces 1. Rivalry 2. Suppliers 3. Buyers 4. New Entrants 5. Substitutes Suppliers Rivalry Buyers Substitutes Baldrige and Five Forces Organization Profile: Environment, Relationships, and Challenges Strengths 2. Strategic Planning 5. Human Resource Focus 1. Leadership 7. Business Results Internal Success Factors Weaknesses 3. Customer Focus 6. Process Management 4. Measurement, Analysis and Knowledge Management Strategy Opportunities New Entrants Suppliers Rivalry Buyers External Success Factors Threats Substitutes Profero, inc

7 Values Vision Mission - Tactics Values What do we hold dear What are we willing not to change just because of current situations Lasting, enduring philosophy, to strive for Vision What do you envision? Where do we want to be? Written in present tense Mission Like in the military - when a team is given a mission to carry out with clear goals, objectives and rules for engagement Tactics The ideas, processes and steps taken to implement the mission Profero, Inc. Leaders in Lean Enterprise Create the future The future you see is the future you get. - Robert G Allen Profero, Inc Corsair Road Suite 18 Frankfort, IL Tel: Fax: Profero, inc

8 Brainstorm Agenda After thorough preparation and review, the team is now ready to discover its strategic direction Requirements: Sticky notes Markers Radar graph Facilitator An open mind Brainstorm Affinity diagram Gap analysis Cause and Effect Drivers, means, outcomes As a team, organize and group the like or similar ideas Remove any duplicates Consolidate, if needed Remove the (currently) impossible Lastly, create names for the headers Affinity Diagram Profero, inc

9 Gap Analysis and Cause & Effect Use the Headings from the Affinity Diagram Determine GAP between where you are now and Worldclass Determine Drivers, Means and Outcomes Gap Analysis Even though this is subjective and based on the team members present, it will give a good indication of where you are at $100 method or other ranking systems (n/3) Look at the average and range $100 Method Each team member is given ten dots (each dot is worth $10) They can place their dots where ever they like They can spread them out or if they feel very strongly on a subject, they can place more there Profero, inc

10 Gap Analysis Example World Class =10 Gap None = Zero Cause & Effect Ask: Does A cause B? Does B drive A? Neither or about the same? Draw lines from one to the other and outs Determine Drivers, Means and Outcomes Count the number of ins Profero, inc

11 Drivers-Means-Outcome Count the number of ins and outs for each category All or almost all ins = driver All or almost all outs = outcomes About equal ins and outs = means Judgment and part subjective Determine Drivers, Means and Outcomes Driver 5 outs 0 ins 2 outs 3 ins Means 0 outs 5 ins Outcome Focus Using Gap Analysis and Drivers-Means- Outcomes helps us determine which items to focus on Look at drivers and gaps The team must achieve consensus on the top priorities Driver Means Outcome Profero, inc

12 Profero, Inc. Leaders in Lean Enterprise Select Top Ideas Profero, Inc Corsair Road Suite 18 Frankfort, IL Tel: Fax: A visionary company doesn't simply balance between preserving a tightly held core ideology and stimulating vigorous change and movement; it does both to an extreme. - Jim Collins Select Top Ideas Agenda Many organizations try to bite off more than they can chew and therefore do not get the results that they were expecting Think of the number of major initiatives you have undertaken in the best how many were done with excellence? Types of improvements Think B.I.G. Breakthrough items X-matrix Profero, inc

13 F C I I I I L Think BIG Think BIG - Boldly Important Goal This will dramatically move us ahead Not achieving this goal would render all other efforts useless Make no little plans; they have no magic to stir men's blood and probably will themselves not be realized. Make big plans; aim high in hope and work, remembering that a noble, logical diagram once recorded will not die. - Daniel Burnham ( ) X-matrix Overview This is one of the main things that helps sets Hoshin planning apart from other methods It is the interaction between sections that will lead to better decisions There are many different styles of matrices 5 Group Health Insurance 2 5S New Product Development (NPD) Program 1 5S Marketing / Promotions / Sales 3 5S Website Redesign 4 5S Move 3-5 Focus Strategic Goals for Planning Year (Short-term, 1-year) Outstanding Products Exceeding Customer Expectations / Outstanding Service Fantastic Marketing New Product Development Outstanding Staffing and Facilities Environment Focus Strategies Gap Analysis / Driver-Means-Outcome Main Tactical Improvement Initiatives or Projects Profero Marketing and Sales Conferences and Seminars Profero NPD/Update Materials Value Stream Mapping Basics & Beyond Book Initiatives & Projects Tree Diagram / Process Decision Program Chart Review / Environmental Scan / SWOT / Vision-Mission-Values / Brainstorm / Affinity Strategic Initiatives Balanced Score Card / Metrics Correlation Matrix / Strategy Maps Targets & Metrics Increase 5S Supply Revenue to $250,000 Customer satisfaction ratings of 4.5 or higher Greater than 99% on-time delivery Increase 5S Supply Revenue Make 5S Supply a great place to work Breakthrough Strategies (Long-term, 3-5 years) 12 inventory turns per year 100% moved into new location 100% "Go-live" with website 5S Training for all staff Balanced Scorecard F Financial C Customer I Internal Processes L Learning & Growth Measurement & Metrics (Balanced Scorecard) Management/Operations Order Fulfillment Purchasing Customer Service New Product Development Team Marketing / Promotions/ / Sales Website / IT Accounting Sales Parties or Departments Delivery of Services Correlation Legend Relationship Team Very Strong Leader Important Member Weak Participant Training Preparation Profero, inc

14 Notes on X-matrix The X-matrix is usually not filled in all at once It takes several iterations before it is set Top level and other level X-matrices have different sections Standardize then customize many companies customize their version to make sense for them Anatomy of a High Level X-matrix Initiatives & Projects Focus Strategies Targets & Metrics Key Players Strategic Initiatives Very Strong Strong Weak Profero, inc

15 High Level X-matrix Example Initiative 6 Initiative 5 Initiative 4 Initiative 3 Initiative 2 Initiative 1 Focus 4 Focus 3 Focus 2 Focus 1 Target 1 Target 2 Target 3 Target 4 Target 5 Target 6 Target 7 Target 8 Key Players Department 1 Department 2 Department 3 Department 4 Department 5 Department 6 Strategy 1 Strategy 2 Strategy 3 Very Strong Strong Weak Profero, Inc. Leaders in Lean Enterprise Top down, button up Profero, Inc Corsair Road Suite 18 Frankfort, IL Tel: Fax: Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives. It is the fuel that allows common people to attain uncommon results. - Andrew Carnegie Profero, inc

16 Connect the Dots You are trying to get from current state to future state What steps need to be taken in order or concurrently Which step is the limiting factor, hard to do, not sure of? Focus on that step so that it does not become the idea killer Use the team approach, play catchball Catchball Catchball is the phrase used to mean the discussion process that takes place before policy is finally The policy ball is thrown back and forth between top and middle managers before a final decision is made The aim of this process of catch-ball is to convert mandatory objectives set by senior management into employees own self-set targets. Profero, inc

17 Start Playing Catchball Think of possible first level strategies that should be worked on this (upcoming) year Throw these items to the appropriate departments of groups Have them develop strategies or ideas for implementation When they are ready, they can throw it back for feedback Drilling Down As you are developing the next tier strategies and tactics you can create another X-matrix to fit that item Update the X-matrix as you go Use brainstorming and create Tree Diagrams to connect top level strategies to first tier, second tier and tactics The number of tiers depends on the complexity of strategies and the size of the organization Profero, inc

18 Tree Diagram Vertical or horizontal Objectives & Goals First & Second Level Strategies Tactics Sticky note method is great for brainstorming until agreement is reached How Why Process Decision Program Chart (PDPC) Murphy s Law Anything that can go wrong, will Which step is risky, vulnerable, uncertain How to prevent, reduce, mitigate problems Similar to FMEA or scenario planning Profero, inc

19 Profero, inc Continue Playing Catchball Continue the Catchball cycle up and down until initiatives are flushed out and consensus is reach between appropriate parties We will add important measures and metrics next Are t hes e SMART? Es timated Cost s Second Level Strategies Tact ics Firs t Lev el Strategies Objec tive/goal How Why 1. Exce edin g Cu sto me rs ' Exp ecta tion s, Ou tsta ndin g Se rvice 1. 5 S Mar ketin g Pr omotio ns / Sale s 2. Fa nta stic Ma rke ting 3. Out stan din g Staf fing a nd Fa cilitie s En vir on ment 4. Outs tand ing Pro od ucts 5. Ne w Prod uct De velo pmen t 2. 5 S N ew Pro du ct Develo pmen t ( NPD) Pro gr am 3. Web site Re des ign 4. 5 S Move Cus tomer Satis factio n Promo tion s - Cre ate a Pro motio nal Ca len dar e mail Campa ign - Get Per missio n Se ar ch En gin e O ptimizatio n (SEO) - Wha t is 5S? o n th e Home pag e Keywor ds - Keywo rd Res ea rch Pa y- pe r- Cl ick (PPC) - Add PPC Tra ckin g Cod e to We bp ag es We bsit e - Auto ma t- icall y Calc ulat e Ship ping Cos ts Affili ate Pro gr am Re fine NPD Pr ogr am Ad ve rtis ing - Tr ade p ub licatio ns - G et Ma iling Lis ts fr om Le an Sou rces - Pos tcar d Campa ign - Vo ice o f Cu sto mer Su rveys - Cus tomer Sat isfac tion Sur veys - Cu sto me r Ap rre ciatio n Day, e tc. - Find List of Le an Cha mpion s /SSBB - An no unc e- me nts - Pro motion s - Bu ild Da tab ase - Ad d a link to Wha t is 5 S on the H omep age - Add the L ean 5S o n all p ag es - Have the p ro duc t ima ges o pe n in a s ep ara te wi ndo w - Ad Opt- in b utto n o n p ag es and a t che ckou t - Su bmit We bsite to Sea rch Eng ine s - Add a "Us efu l Lin ks" Pa ge - Cre ate PPC ke ywor ds th at g o d ire ctly to p ag e - Pa ge o f Co mp an ies tha t us e u s an d a link ba ck to their site s - Sub - doma ins with Article s - L inks - Meta Ta gs - Sp on so r at Trad e Sh ows - Ad ve rtis e o n L ea n re late d Site s Strategy 2 Strategy 3 Initiative 4 Initiative 3 Initiative 2 Initiative 6 Initiative 5 Key Players Target 1 Initiative 1 Focus 1 Strategy 1 Very Strong Strong Weak Focus 2 Focus 3 Focus 4 Target 2 Target 3 Target 4 Target 5 Target 6 Target 7 Target 8 Depart ment 1 Depart ment 2 Depart ment 3 Depart ment 4 Depart ment 5 Depart ment 6 Are these SMA RT? Esti mated Costs Second Level Strategies Tactics First Level S trategies Objective/Goal Ho w Why 1. Exceeding C us tomers' Expectations, Outst anding Service 1. 5S Marketing Prom otions / Sales 2. Fantastic Marketi ng 3. Outstanding Staf fing and Facili ties Envi ronment 4. Outs tanding Prooducts 5. N ew Product D evelopment 2. 5S New Produc t D evelopment (NPD) Program 3. Webs ite Redes ign 4. 5S Move Customer Sat isfaction Promotions - Create a Promotional Calendar em ail Campaign - Get Permis s ion Search Engine Optimizat ion (SEO) - What is 5S? on the Homepage Keywords - Keyw ord R es earc h Pay-per- Clic k (PPC ) - Add PPC Tracking C ode t o Webpages Webs ite - Automatical ly Cal culate Shipping Cos ts Aff iliat e Program Refine NPD Program Advert ising - Trade publications - Get Mailing Li sts from Lean Sources - Postc ard Campaign - Voice of C us tomer - Customer Satis fac tion - C us tomer Aprrec iation Day, etc. - Find Lis t of Lean Champions /SSBB - Announcements - Promotions - Buil d D atabas e - Add a link to What is 5S on the Homepage - Add the 888-4Lean5S on all pages - Have the product images open in a s eparate w indow - Ad Opt-in button on pages and at c heckout - Submi t Websi te to Search Engines - Add a "U seful Links " Page - C reate PPC keyw ords that go directly to page - Page of Companies that use us and a link back to their sites - Subdomains w ith Articles - Links - Meta Tags - Spons or at Trade Shows - Advert ise on Lean related Sites Are these SMART? Est imated Cost s Sec ond Level Strat egies Tact ics First Level Strategies Objectiv e/goal How Wh y 1. Exce edin g Cu stom e rs' Exp ecta tions, Outsta nd ing Ser vice 1. 5S Ma rketin g Prom o tions / Sa les 2. Fa nta stic Ma rketi ng 3. Outs tand ing Staffin g an d Facilit ies Enviro nm en t 4. Outs tan ding Pr ood ucts 5. Ne w Prod uct Develo pm ent 2. 5S Ne w Prod uct Develop m ent (NPD) Pro gra m 3. Web site Re de sign 4. 5S Move Cu sto me r Sa tisfa ction Prom otio ns - Crea te a Pro mo tion al Ca lend ar em ail Cam pa ign - Get Per m issio n Sea rch Eng ine Optim izatio n (SEO) - Wh at is 5 S? on the Ho m epa ge Ke ywo rd s - Keywor d Rese ar ch Pa y- per - C lick (PPC) - Add PPC Tr acking Cod e to Webp age s We bs ite - Auto m atica lly Ca lcula te Ship pin g Co sts Affiliat e Prog ram Refin e NPD Prog ra m Ad vertis ing - Tr ade p ub lication s - Get M ailing Lists fro m Lea n So urc es - Po stca rd Ca mp aig n - Voice of Cus tom er - Cu sto me r Satisfa ction - Cu stom e r Ap rre ciatio n Day, etc. - Find List o f Le an Ch am pion s /SSBB - Anno unce - m ents - Pr om o- tio ns - Bu ild Da tab ase - Add a link to Wha t is 5S on the Hom e pag e - Add the Lea n5 S o n a ll pa ges - Have th e p ro duct im a ges o pe n in a s ep ara te win do w - Ad Op t-in bu tton on pa ges an d at ch ecko ut - Sub mit Webs ite to Sear ch Engin es - Add a "Us eful Lin ks" Pa ge - Crea te PPC ke ywo rds th at go d irectly to p age - Pa ge of Co m pan ies th at u se u s a nd a link b ack to their s ites - Sub - do m ains with Article s - L inks - M eta Tags - Sp on sor at Tra de Sho ws - Ad ve rtise on L ea n re lated Site s Set the Line of Sight Strategy 2 Strategy 3 Initiative 4 Initiative 3 Initiative 2 Initiative 6 Initiative 5 Key Players Target 1 Initiative 1 Focus 1 Strategy 1 Very Strong Strong Weak Focus 2 Focus 3 Focus 4 Target 2 Target 3 Target 4 Target 5 Target 6 Target 7 Target 8 Depart ment 1 Depart ment 2 Depart ment 3 Depart ment 4 Depart ment 5 Depart ment 6 Are the se SM ART? Est im ate d Co st s Sec ond Level Strat egies Tact ics First Level Strategies Objectiv e/goal How Wh y 1. Exce edin g Cu stom e rs' Exp ecta tions, Outsta nd ing Ser vice 1. 5S Ma rketin g Prom o tions / Sa les 2. Fa nta stic Ma rketi ng 3. Outs tand ing Staffin g an d Facilit ies Enviro nm en t 4. Outs tan ding Pr ood ucts 5. Ne w Prod uct Develo pm ent 2. 5S Ne w Prod uct Develop m ent (NPD) Pro gra m 3. Web site Re de sign 4. 5S Move Cu sto me r Sa tisfa ction Prom otio ns - Crea te a Pro mo tion al Ca lend ar em ail Cam pa ign - Get Per m issio n Sea rch Eng ine Optim izatio n (SEO) - Wh at is 5 S? on the Ho m epa ge Ke ywo rd s - Keywor d Rese ar ch Pa y- per - C lick (PPC) - Add PPC Tr acking Cod e to Webp age s We bs ite - Auto m atica lly Ca lcula te Ship pin g Co sts Affiliat e Prog ram Refin e NPD Prog ra m Ad vertis ing - Tr ade p ub lication s - Get M ailing Lists fro m Lea n So urc es - Po stca rd Ca mp aig n - Voice of Cus tom er - Cu sto me r Satisfa ction - Cu stom e r Ap rre ciatio n Day, etc. - Find List o f Le an Ch am pion s /SSBB - Anno unce - m ents - Pr om o- tio ns - Bu ild Da tab ase - Add a link to Wha t is 5S on the Hom e pag e - Add the Lea n5 S o n a ll pa ges - Have th e p ro duct im a ges o pe n in a s ep ara te win do w - Ad Op t-in bu tton on pa ges an d at ch ecko ut - Sub mit Webs ite to Sear ch Engin es - Add a "Us eful Lin ks" Pa ge - Crea te PPC ke ywo rds th at go d irectly to p age - Pa ge of Co m pan ies th at u se u s a nd a link b ack to their s ites - Sub - do m ains with Article s - L inks - M eta Tags - Sp on sor at Tra de Sho ws - Ad ve rtise on L ea n re lated Site s Are the se SM ART? Est im ate d Co st s Sec ond Level Strat egies Tact ics First Level Strategies Objectiv e/goal How Wh y 1. Exce edin g Cu stom e rs' Exp ecta tions, Outsta nd ing Ser vice 1. 5S Ma rketin g Prom o tions / Sa les 2. Fa nta stic Ma rketi ng 3. Outs tand ing Staffin g an d Facilit ies Enviro nm en t 4. Outs tan ding Pr ood ucts 5. Ne w Prod uct Develo pm ent 2. 5S Ne w Prod uct Develop m ent (NPD) Pro gra m 3. Web site Re de sign 4. 5S Move Cu sto me r Sa tisfa ction Prom otio ns - Crea te a Pro mo tion al Ca lend ar em ail Cam pa ign - Get Per m issio n Sea rch Eng ine Optim izatio n (SEO) - Wh at is 5 S? on the Ho m epa ge Ke ywo rd s - Keywor d Rese ar ch Pa y- per - C lick (PPC) - Add PPC Tr acking Cod e to Webp age s We bs ite - Auto m atica lly Ca lcula te Ship pin g Co sts Affiliat e Prog ram Refin e NPD Prog ra m Ad vertis ing - Tr ade p ub lication s - Get M ailing Lists fro m Lea n So urc es - Po stca rd Ca mp aig n - Voice of Cus tom er - Cu sto me r Satisfa ction - Cu stom e r Ap rre ciatio n Day, etc. - Find List o f Le an Ch am pion s /SSBB - Anno unce - m ents - Pr om o- tio ns - Bu ild Da tab ase - Add a link to Wha t is 5S on the Hom e pag e - Add the Lea n5 S o n a ll pa ges - Have th e p ro duct im a ges o pe n in a s ep ara te win do w - Ad Op t-in bu tton on pa ges an d at ch ecko ut - Sub mit Webs ite to Sear ch Engin es - Add a "Us eful Lin ks" Pa ge - Crea te PPC ke ywo rds th at go d irectly to p age - Pa ge of Co m pan ies th at u se u s a nd a link b ack to their s ites - Sub - do m ains with Article s - L inks - M eta Tags - Sp on sor at Tra de Sho ws - Ad ve rtise on L ea n re lated Site s Strategy 2 Strategy 3 Initiative 4 Initiative 3 Initiative 2 Initiative 6 Initiative 5 Key Players Target 1 Initiative 1 Focus 1 Strategy 1 Very Strong Strong Weak Focus 2 Focus 3 Focus 4 Target 2 Target 3 Target 4 Target 5 Target 6 Target 7 Target 8 Depart ment 1 Depart ment 2 Depart ment 3 Depart ment 4 Depart ment 5 Depart ment 6 Are the se SM ART? Est im ate d Co st s Sec ond Level Strat egies Tact ics First Level Strategies Objectiv e/goal How Wh y 1. Exce edin g Cu stom e rs' Exp ecta tions, Outsta nd ing Ser vice 1. 5S Ma rketin g Prom o tions / Sa les 2. Fa nta stic Ma rketi ng 3. Outs tand ing Staffin g an d Facilit ies Enviro nm en t 4. Outs tan ding Pr ood ucts 5. Ne w Prod uct Develo pm ent 2. 5S Ne w Prod uct Develop m ent (NPD) Pro gra m 3. Web site Re de sign 4. 5S Move Cu sto me r Sa tisfa ction Prom otio ns - Crea te a Pro mo tion al Ca lend ar em ail Cam pa ign - Get Per m issio n Sea rch Eng ine Optim izatio n (SEO) - Wh at is 5 S? on the Ho m epa ge Ke ywo rd s - Keywor d Rese ar ch Pa y- per - C lick (PPC) - Add PPC Tr acking Cod e to Webp age s We bs ite - Auto m atica lly Ca lcula te Ship pin g Co sts Affiliat e Prog ram Refin e NPD Prog ra m Ad vertis ing - Tr ade p ub lication s - Get M ailing Lists fro m Lea n So urc es - Po stca rd Ca mp aig n - Voice of Cus tom er - Cu sto me r Satisfa ction - Cu stom e r Ap rre ciatio n Day, etc. - Find List o f Le an Ch am pion s /SSBB - Anno unce - m ents - Pr om o- tio ns - Bu ild Da tab ase - Add a link to Wha t is 5S on the Hom e pag e - Add the Lea n5 S o n a ll pa ges - Have th e p ro duct im a ges o pe n in a s ep ara te win do w - Ad Op t-in bu tton on pa ges an d at ch ecko ut - Sub mit Webs ite to Sear ch Engin es - Add a "Us eful Lin ks" Pa ge - Crea te PPC ke ywo rds th at go d irectly to p age - Pa ge of Co m pan ies th at u se u s a nd a link b ack to their s ites - Sub - do m ains with Article s - L inks - M eta Tags - Sp on sor at Tra de Sho ws - Ad ve rtise on L ea n re lated Site s Are the se SM ART? Est im ate d Co st s Sec ond Level Strat egies Tact ics First Level Strategies Objectiv e/goal How Wh y 1. Exce edin g Cu stom e rs' Exp ecta tions, Outsta nd ing Ser vice 1. 5S Ma rketin g Prom o tions / Sa les 2. Fa nta stic Ma rketi ng 3. Outs tand ing Staffin g an d Facilit ies Enviro nm en t 4. Outs tan ding Pr ood ucts 5. Ne w Prod uct Develo pm ent 2. 5S Ne w Prod uct Develop m ent (NPD) Pro gra m 3. Web site Re de sign 4. 5S Move Cu sto me r Sa tisfa ction Prom otio ns - Crea te a Pro mo tion al Ca lend ar em ail Cam pa ign - Get Per m issio n Sea rch Eng ine Optim izatio n (SEO) - Wh at is 5 S? on the Ho m epa ge Ke ywo rd s - Keywor d Rese ar ch Pa y- per - C lick (PPC) - Add PPC Tr acking Cod e to Webp age s We bs ite - Auto m atica lly Ca lcula te Ship pin g Co sts Affiliat e Prog ram Refin e NPD Prog ra m Ad vertis ing - Tr ade p ub lication s - Get M ailing Lists fro m Lea n So urc es - Po stca rd Ca mp aig n - Voice of Cus tom er - Cu sto me r Satisfa ction - Cu stom e r Ap rre ciatio n Day, etc. - Find List o f Le an Ch am pion s /SSBB - Anno unce - m ents - Pr om o- tio ns - Bu ild Da tab ase - Add a link to Wha t is 5S on the Hom e pag e - Add the Lea n5 S o n a ll pa ges - Have th e p ro duct im a ges o pe n in a s ep ara te win do w - Ad Op t-in bu tton on pa ges an d at ch ecko ut - Sub mit Webs ite to Sear ch Engin es - Add a "Us eful Lin ks" Pa ge - Crea te PPC ke ywo rds th at go d irectly to p age - Pa ge of Co m pan ies th at u se u s a nd a link b ack to their s ites - Sub - do m ains with Article s - L inks - M eta Tags - Sp on sor at Tra de Sho ws - Ad ve rtise on L ea n re lated Site s Strategy 2 Strategy 3 Initiative 4 Initiative 3 Initiative 2 Initiative 6 Initiative 5 Key Players Target 1 Initiative 1 Focus 1 Strategy 1 Very Strong Strong Weak Focus 2 Focus 3 Focus 4 Target 2 Target 3 Target 4 Target 5 Target 6 Target 7 Target 8 Depart ment 1 Depart ment 2 Depart ment 3 Depart ment 4 Depart ment 5 Depart ment 6 Are the se SM ART? Est im ate d Co st s Sec ond Level Strat egies Tact ics First Level Strategies Objectiv e/goal How Wh y 1. Exce edin g Cu stom e rs' Exp ecta tions, Outsta nd ing Ser vice 1. 5S Ma rketin g Prom o tions / Sa les 2. Fa nta stic Ma rketi ng 3. Outs tand ing Staffin g an d Facilit ies Enviro nm en t 4. Outs tan ding Pr ood ucts 5. Ne w Prod uct Develo pm ent 2. 5S Ne w Prod uct Develop m ent (NPD) Pro gra m 3. Web site Re de sign 4. 5S Move Cu sto me r Sa tisfa ction Prom otio ns - Crea te a Pro mo tion al Ca lend ar em ail Cam pa ign - Get Per m issio n Sea rch Eng ine Optim izatio n (SEO) - Wh at is 5 S? on the Ho m epa ge Ke ywo rd s - Keywor d Rese ar ch Pa y- per - C lick (PPC) - Add PPC Tr acking Cod e to Webp age s We bs ite - Auto m atica lly Ca lcula te Ship pin g Co sts Affiliat e Prog ram Refin e NPD Prog ra m Ad vertis ing - Tr ade p ub lication s - Get M ailing Lists fro m Lea n So urc es - Po stca rd Ca mp aig n - Voice of Cus tom er - Cu sto me r Satisfa ction - Cu stom e r Ap rre ciatio n Day, etc. - Find List o f Le an Ch am pion s /SSBB - Anno unce - m ents - Pr om o- tio ns - Bu ild Da tab ase - Add a link to Wha t is 5S on the Hom e pag e - Add the Lea n5 S o n a ll pa ges - Have th e p ro duct im a ges o pe n in a s ep ara te win do w - Ad Op t-in bu tton on pa ges an d at ch ecko ut - Sub mit Webs ite to Sear ch Engin es - Add a "Us eful Lin ks" Pa ge - Crea te PPC ke ywo rds th at go d irectly to p age - Pa ge of Co m pan ies th at u se u s a nd a link b ack to their s ites - Sub - do m ains with Article s - L inks - M eta Tags - Sp on sor at Tra de Sho ws - Ad ve rtise on L ea n re lated Site s Are the se SM ART? Est im ate d Co st s Sec ond Level Strat egies Tact ics First Level Strategies Objectiv e/goal How Wh y 1. Exce edin g Cu stom e rs' Exp ecta tions, Outsta nd ing Ser vice 1. 5S Ma rketin g Prom o tions / Sa les 2. Fa nta stic Ma rketi ng 3. Outs tand ing Staffin g an d Facilit ies Enviro nm en t 4. Outs tan ding Pr ood ucts 5. Ne w Prod uct Develo pm ent 2. 5S Ne w Prod uct Develop m ent (NPD) Pro gra m 3. Web site Re de sign 4. 5S Move Cu sto me r Sa tisfa ction Prom otio ns - Crea te a Pro mo tion al Ca lend ar em ail Cam pa ign - Get Per m issio n Sea rch Eng ine Optim izatio n (SEO) - Wh at is 5 S? on the Ho m epa ge Ke ywo rd s - Keywor d Rese ar ch Pa y- per - C lick (PPC) - Add PPC Tr acking Cod e to Webp age s We bs ite - Auto m atica lly Ca lcula te Ship pin g Co sts Affiliat e Prog ram Refin e NPD Prog ra m Ad vertis ing - Tr ade p ub lication s - Get M ailing Lists fro m Lea n So urc es - Po stca rd Ca mp aig n - Voice of Cus tom er - Cu sto me r Satisfa ction - Cu stom e r Ap rre ciatio n Day, etc. - Find List o f Le an Ch am pion s /SSBB - Anno unce - m ents - Pr om o- tio ns - Bu ild Da tab ase - Add a link to Wha t is 5S on the Hom e pag e - Add the Lea n5 S o n a ll pa ges - Have th e p ro duct im a ges o pe n in a s ep ara te win do w - Ad Op t-in bu tton on pa ges an d at ch ecko ut - Sub mit Webs ite to Sear ch Engin es - Add a "Us eful Lin ks" Pa ge - Crea te PPC ke ywo rds th at go d irectly to p age - Pa ge of Co m pan ies th at u se u s a nd a link b ack to their s ites - Sub - do m ains with Article s - L inks - M eta Tags - Sp on sor at Tra de Sho ws - Ad ve rtise on L ea n re lated Site s Are the se SM ART? Est im ate d Co st s Sec ond Level Strat egies Tact ics First Level Strategies Objectiv e/goal How Wh y 1. Exce edin g Cu stom e rs' Exp ecta tions, Outsta nd ing Ser vice 1. 5S Ma rketin g Prom o tions / Sa les 2. Fa nta stic Ma rketi ng 3. Outs tand ing Staffin g an d Facilit ies Enviro nm en t 4. Outs tan ding Pr ood ucts 5. Ne w Prod uct Develo pm ent 2. 5S Ne w Prod uct Develop m ent (NPD) Pro gra m 3. Web site Re de sign 4. 5S Move Cu sto me r Sa tisfa ction Prom otio ns - Crea te a Pro mo tion al Ca lend ar em ail Cam pa ign - Get Per m issio n Sea rch Eng ine Optim izatio n (SEO) - Wh at is 5 S? on the Ho m epa ge Ke ywo rd s - Keywor d Rese ar ch Pa y- per - C lick (PPC) - Add PPC Tr acking Cod e to Webp age s We bs ite - Auto m atica lly Ca lcula te Ship pin g Co sts Affiliat e Prog ram Refin e NPD Prog ra m Ad vertis ing - Tr ade p ub lication s - Get M ailing Lists fro m Lea n So urc es - Po stca rd Ca mp aig n - Voice of Cus tom er - Cu sto me r Satisfa ction - Cu stom e r Ap rre ciatio n Day, etc. - Find List o f Le an Ch am pion s /SSBB - Anno unce - m ents - Pr om o- tio ns - Bu ild Da tab ase - Add a link to Wha t is 5S on the Hom e pag e - Add the Lea n5 S o n a ll pa ges - Have th e p ro duct im a ges o pe n in a s ep ara te win do w - Ad Op t-in bu tton on pa ges an d at ch ecko ut - Sub mit Webs ite to Sear ch Engin es - Add a "Us eful Lin ks" Pa ge - Crea te PPC ke ywo rds th at go d irectly to p age - Pa ge of Co m pan ies th at u se u s a nd a link b ack to their s ites - Sub - do m ains with Article s - L inks - M eta Tags - Sp on sor at Tra de Sho ws - Ad ve rtise on L ea n re lated Site s Strategy 2 Strategy 3 Initiative 4 Initiative 3 Initiative 2 Initiative 6 Initiative 5 Key Players Target 1 Initiative 1 Focus 1 Strategy 1 Very Strong Strong Weak Focus 2 Focus 3 Focus 4 Target 2 Target 3 Target 4 Target 5 Target 6 Target 7 Target 8 Depart ment 1 Depart ment 2 Depart ment 3 Depart ment 4 Depart ment 5 Depart ment 6 Are the se SM ART? Est im ate d Co st s Sec ond Level Strat egies Tact ics First Level Strategies Objectiv e/goal How Wh y 1. Exce edin g Cu stom e rs' Exp ecta tions, Outsta nd ing Ser vice 1. 5S Ma rketin g Prom o tions / Sa les 2. Fa nta stic Ma rketi ng 3. Outs tand ing Staffin g an d Facilit ies Enviro nm en t 4. Outs tan ding Pr ood ucts 5. Ne w Prod uct Develo pm ent 2. 5S Ne w Prod uct Develop m ent (NPD) Pro gra m 3. Web site Re de sign 4. 5S Move Cu sto me r Sa tisfa ction Prom otio ns - Crea te a Pro mo tion al Ca lend ar em ail Cam pa ign - Get Per m issio n Sea rch Eng ine Optim izatio n (SEO) - Wh at is 5 S? on the Ho m epa ge Ke ywo rd s - Keywor d Rese ar ch Pa y- per - C lick (PPC) - Add PPC Tr acking Cod e to Webp age s We bs ite - Auto m atica lly Ca lcula te Ship pin g Co sts Affiliat e Prog ram Refin e NPD Prog ra m Ad vertis ing - Tr ade p ub lication s - Get M ailing Lists fro m Lea n So urc es - Po stca rd Ca mp aig n - Voice of Cus tom er - Cu sto me r Satisfa ction - Cu stom e r Ap rre ciatio n Day, etc. - Find List o f Le an Ch am pion s /SSBB - Anno unce - m ents - Pr om o- tio ns - Bu ild Da tab ase - Add a link to Wha t is 5S on the Hom e pag e - Add the Lea n5 S o n a ll pa ges - Have th e p ro duct im a ges o pe n in a s ep ara te win do w - Ad Op t-in bu tton on pa ges an d at ch ecko ut - Sub mit Webs ite to Sear ch Engin es - Add a "Us eful Lin ks" Pa ge - Crea te PPC ke ywo rds th at go d irectly to p age - Pa ge of Co m pan ies th at u se u s a nd a link b ack to their s ites - Sub - do m ains with Article s - L inks - M eta Tags - Sp on sor at Tra de Sho ws - Ad ve rtise on L ea n re lated Site s Are the se SM ART? Est im ate d Co st s Sec ond Level Strat egies Tact ics First Level Strategies Objectiv e/goal How Wh y 1. Exce edin g Cu stom e rs' Exp ecta tions, Outsta nd ing Ser vice 1. 5S Ma rketin g Prom o tions / Sa les 2. Fa nta stic Ma rketi ng 3. Outs tand ing Staffin g an d Facilit ies Enviro nm en t 4. Outs tan ding Pr ood ucts 5. Ne w Prod uct Develo pm ent 2. 5S Ne w Prod uct Develop m ent (NPD) Pro gra m 3. Web site Re de sign 4. 5S Move Cu sto me r Sa tisfa ction Prom otio ns - Crea te a Pro mo tion al Ca lend ar em ail Cam pa ign - Get Per m issio n Sea rch Eng ine Optim izatio n (SEO) - Wh at is 5 S? on the Ho m epa ge Ke ywo rd s - Keywor d Rese ar ch Pa y- per - C lick (PPC) - Add PPC Tr acking Cod e to Webp age s We bs ite - Auto m atica lly Ca lcula te Ship pin g Co sts Affiliat e Prog ram Refin e NPD Prog ra m Ad vertis ing - Tr ade p ub lication s - Get M ailing Lists fro m Lea n So urc es - Po stca rd Ca mp aig n - Voice of Cus tom er - Cu sto me r Satisfa ction - Cu stom e r Ap rre ciatio n Day, etc. - Find List o f Le an Ch am pion s /SSBB - Anno unce - m ents - Pr om o- tio ns - Bu ild Da tab ase - Add a link to Wha t is 5S on the Hom e pag e - Add the Lea n5 S o n a ll pa ges - Have th e p ro duct im a ges o pe n in a s ep ara te win do w - Ad Op t-in bu tton on pa ges an d at ch ecko ut - Sub mit Webs ite to Sear ch Engin es - Add a "Us eful Lin ks" Pa ge - Crea te PPC ke ywo rds th at go d irectly to p age - Pa ge of Co m pan ies th at u se u s a nd a link b ack to their s ites - Sub - do m ains with Article s - L inks - M eta Tags - Sp on sor at Tra de Sho ws - Ad ve rtise on L ea n re lated Site s Are the se SM ART? Est im ate d Co st s Sec ond Level Strat egies Tact ics First Level Strategies Objectiv e/goal How Wh y 1. Exce edin g Cu stom e rs' Exp ecta tions, Outsta nd ing Ser vice 1. 5S Ma rketin g Prom o tions / Sa les 2. Fa nta stic Ma rketi ng 3. Outs tand ing Staffin g an d Facilit ies Enviro nm en t 4. Outs tan ding Pr ood ucts 5. Ne w Prod uct Develo pm ent 2. 5S Ne w Prod uct Develop m ent (NPD) Pro gra m 3. Web site Re de sign 4. 5S Move Cu sto me r Sa tisfa ction Prom otio ns - Crea te a Pro mo tion al Ca lend ar em ail Cam pa ign - Get Per m issio n Sea rch Eng ine Optim izatio n (SEO) - Wh at is 5 S? on the Ho m epa ge Ke ywo rd s - Keywor d Rese ar ch Pa y- per - C lick (PPC) - Add PPC Tr acking Cod e to Webp age s We bs ite - Auto m atica lly Ca lcula te Ship pin g Co sts Affiliat e Prog ram Refin e NPD Prog ra m Ad vertis ing - Tr ade p ub lication s - Get M ailing Lists fro m Lea n So urc es - Po stca rd Ca mp aig n - Voice of Cus tom er - Cu sto me r Satisfa ction - Cu stom e r Ap rre ciatio n Day, etc. - Find List o f Le an Ch am pion s /SSBB - Anno unce - m ents - Pr om o- tio ns - Bu ild Da tab ase - Add a link to Wha t is 5S on the Hom e pag e - Add the Lea n5 S o n a ll pa ges - Have th e p ro duct im a ges o pe n in a s ep ara te win do w - Ad Op t-in bu tton on pa ges an d at ch ecko ut - Sub mit Webs ite to Sear ch Engin es - Add a "Us eful Lin ks" Pa ge - Crea te PPC ke ywo rds th at go d irectly to p age - Pa ge of Co m pan ies th at u se u s a nd a link b ack to their s ites - Sub - do m ains with Article s - L inks - M eta Tags - Sp on sor at Tra de Sho ws - Ad ve rtise on L ea n re lated Site s

20 Profero, Inc. Leaders in Lean Enterprise Measures & Metrics What gets measured, gets done. - Tom Peters Profero, Inc Corsair Road Suite 18 Frankfort, IL Tel: Fax: What Really Works? Don t just recycle measurements that you already have just because you already have them Do they make sense to the people that need them? Could you run your organization from a dashboard? Profero, inc

21 Balanced Scorecard Approach Balanced Scorecard (Kaplan and Norton) categorizes measures into four main categories: Financial Customer Internal Innovation and Learning The use of leading, lagging and real-time indicators Internal and external measures Short-term and longterm Financial and nonfinancial Measures and Metrics Try to use a mix of leading, lagging and realtime Leading we can adjust Lagging outcome Real-time as-is Leading How many pitches? Percent of budget used Takt time Real-time Ball, strike, hit, out? Number of clicks Processing time Lagging The score of the game? Sales or revenue On-time delivery Profero, inc

22 Reality Check Do the measures make sense especially to the people that see them? Can you actually measure them? What is the cost involved with getting the information? Is it worth it? Can people manipulate the measure? Does it drive unintended actions? Policies drive behaviors Profero, Inc. Leaders in Lean Enterprise Rollout & Communication Profero, Inc Corsair Road Suite 18 Frankfort, IL Tel: Fax: Winning is not a sometime thing; it's an all time thing. You don't win once in a while, you don't do things right once in a while, you do them right all the time. Winning is habit. Unfortunately, so is losing. - Vince Lombardi Profero, inc

23 Communicate! Communication is a key element for organizational transformations Consider: how, how often, by whom, what the message is, what our results are or status is Does everyone know their role in achieving the goals? Lead by example work it in whenever you can Profero, Inc. Leaders in Lean Enterprise Wrap-up Profero, Inc Corsair Road Suite 18 Frankfort, IL Tel: Fax: In the struggle for survival, the fittest win out at the expense of their rivals because they succeed in adapting themselves best to their environment. - Charles Darwin Profero, inc

24 Scheduled Reviews In order to keep this moving and to emphasize the importance, scheduled reviews must take place The reviews need to be looking for barriers to implementation or changes in activities Beware of the shiny object ; things that might distract us form our agreed upon goals Conclusion Use continuous improve as part of this process you probably won t be experts the first time (or few times) that you do this Follow the P-D-C-A cycle, look for improvements to the process Keep at it, even when it seems hard Lead by example Communicate! Profero, inc

25 Developer Anthony Manos Tony Manos is a Professional Business Advisor with expertise in Lean. Trained and certified by the Department of Commerce, National Institute of Standards and Technology (NIST) in Lean principles and as a trainer in Lean courses. He is an international trainer and speaker on Lean topics. Mr. Manos is a Senior Member of ASQ, SME and AME and is a Shingo Prize examiner Feel free to contact me if you have any comments or questions Tony Manos Catalyst Profero, Inc Corsair Road, Suite #18 Frankfort, IL USA Cell: Fax: anthony.manos@proferoinc.com Website: Additional Resources Profero, Inc. - American Society for Quality - Beyond Strategic Vision Michael Cowley and Ellen Domb Hoshin Kanri for the Lean Enterprise Thomas L. Jackson Hoshin Handbook Pete Babich The Balanced Scorecard Robert S. Kaplan and David P. Norton Strategy Maps - Robert S. Kaplan and David P. Norton Leading Change John P. Kotter Profero, inc

26 Additional Resources Group 5S Supply Profero, Inc. Leaders in Lean Enterprise Thank you Profero, Inc Corsair Road Suite 18 Frankfort, IL Tel: Fax: Profero, inc